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46 U.S.C. § 57307 - U.S. Code - Unannotated Title 46. Shipping § 57307. Recognition of gain for tax purposes

Current as of January 01, 2024 | Updated by Findlaw Staff

The owner of an obsolete vessel does not recognize a gain under the Federal income tax laws when the vessel is transferred to the Secretary of Transportation in exchange for a trade-in allowance under this chapter. The basis of the new vessel acquired with the allowance is the same as the basis of the obsolete vessel--

(1) increased by the difference between the cost of the new vessel and the trade-in allowance of the obsolete vessel; and

(2) decreased by the amount of loss recognized on the transfer.

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Cite this article: FindLaw.com - 46 U.S.C. § 57307 - U.S. Code - Unannotated Title 46. Shipping § 57307. Recognition of gain for tax purposes - last updated January 01, 2024 | https://codes.findlaw.com/us/title-46-shipping/46-usc-sect-57307/

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